2023 TurboTax® Canada Tips

Alberta Tax Brackets, Rates & Provincial Tax Credits

TurboTax Canada
December 19, 2023 | 3 Min Read
Updated for tax year 2023

Beautiful Alberta! Not only is Alberta one of the best places to live in Canada with stunning nature, the Calgary Stampede (dubbed the greatest outdoor show on earth), and tons of winter sports, but Alberta also boasts one of the lowest income tax rates in Canada.

The tax rates in Alberta range from 10% to 15% of income and the combined federal and provincial tax rate is between 25% and 48%.

Key Takeaways
  1. Alberta uses a progressive tax structure, which means that a specific tax rate is applicable to a set range of income.
  2. Alberta has the highest basic personal amounts (BPA) in Canada.
  3. For the 2023 tax year, the Alberta basic personal amount is  $21,003, while the federal basic personal amount is $15,000.

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Alberta’s personal income tax brackets for Tax Year 2023

Tax Rate

Tax Bracket

Taxable Annual Income

10%

on the first $142,292

$142,292 or less

12%

on the next $28,459

over $142,292 up to $170,751

13%

on the next $56,917

over $170,751 up to $227,668

14%

on the next $113,834

over $227,668 up to $341,502

15%

on the portion over $341,502

over $341,502

How Alberta’s tax brackets work

Alberta’s tax system is similar to most other Canadian provinces and largely mirrors the tax structure at the federal level. As with most provinces, Alberta uses a progressive tax structure, which means that a specific tax rate is applicable to a set range of income. Tax brackets aren’t static —tax rates increase each year, based on inflation.  

What’s used to calculate the tax rates in Alberta?

Income for determining your tax bracket is calculated by adding the sum of all income streams for the year, such as employment, self-employment, pension, saving plans, investments, benefits, and more totalled on Line 15000 – Total Income, then subtracting applicable deductions. The result of this calculation is shown on Line 26000 – Taxable Income and used to determine your tax brackets.

You can use our free Alberta income tax calculator to get your tax amounts in minutes.

Why does Alberta pay less taxes?

Alberta has the highest basic personal amounts in Canada. Basic personal amounts are the allowable amount of income that you can earn before you must start paying taxes. For the 2023 tax year, the Alberta basic personal amount is $21,003, while the federal basic personal amount is $15,000

Moreover, the first tax bracket in Alberta (up to $142,292) is only taxed at a 10% tax rate. And with no sales tax, payroll tax, or health premiums in Alberta, Albertans generally pay lower taxes and keep more of their earnings compared to other provinces.

Alberta’s combined marginal tax rates

Along with provincial taxes, all Canadian taxpayers pay federal income taxes. Below are the combined Alberta and federal tax rates and brackets for 2023. 

Taxable income

Employment, self-employment, interest and other income

Capital Gains

Eligible Canadian dividends

Ineligible Canadian dividends

First $53,359

25%

12.50%

2.57%

15.86%

Over $53,359 up to $106,717

30.50%

15.25%

10.16%

22.18%

Over $106,617 up to $142,292

36%

18%

17.75%

28.51%

Over $142,292 up to $165,430

38%

19%

20.51%

30.81%

Over $165,430 up to $170,751

41.32%

20.66%

25.09%

34.63%

Over $170,751 up to $227,668

42.32%

21.16%

26.47%

35.78%

Over $227,668 up to $235,675

43.32%

21.66%

27.85%

36.93%

Over $235,675 up to $341,502

47%

23.50%

32.93%

41.16%

Over $341,502

48%

24%

34.31%

42.31%

Alberta’s provincial tax credits

Many of the Alberta provincial tax credits and deductions complement similar ones at the federal level, but there are some unique credits for residents of Alberta.

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